Russian Lawyers Create Specialized Commission To Help Local Crypto Industry

News, Regulation | December 17, 2018 By:

The Russian Lawyers Association and educational organization Blockchain Lawyers have joined forces to create a specialized commission that will address the legal challenges in the local crypto industry.

The commission will reportedly provide answers to the questions and problems arising due to the lack of proper crypto regulations in Russia. The commission will also work with companies in other related sectors, such as blockchain development, artificial intelligence (AI), quantum technologies and the Internet of Things (IoT).

Russian news outlet Bitcrypto News reported that during a round table discussion, members of the commission expressed confidence that they will be able to give legal definitions to many new economic and technological phenomena in the digital space. They discussed the subject of taxation, issues of law enforcement, protection of rights to digital assets, the formation of special legal regimes and the criminal law regulation of the crypto industry.

“Over the past decades the legal category “thing” has been narrowed and refined, and the concept of “property” has eroded on the contrary,” said Roman Yankovsky, partner of the Zartsyin, Yankovsky and Partners law firm. “As a result, the civil-law qualification of cryptocurrency rights has become an almost impossible task. Therefore, for the introduction of intangible objects in the turnover of the legal field, it is necessary to make changes to the system of civil rights.”

Earlier this year, Russia’s parliament, the State Duma, approved the first reading of new laws regulating the crypto industry. The laws define cryptocurrencies as “other property” and ICOs as “property rights,” which means the Russian tax code will apply different rates to these two categories once the legislation has been adopted.

“The main problem is that the tax code separates the concepts of “property” and “property rights,” as a result, two polar tax regimes arise,” said Mikhail Uspensky, partner of the law firm Taxology. “As long as the legislator does not clearly define the civil nature of the token, it will be extremely difficult to build a competent tax accounting.”